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The port of Gresik-Djaratan has functioned as an important commercial center since the eleventh century, trading with merchants from as far away as China, India, and Arabia. Some of these traders helped spread Islam in the area. In 1487, Sunan Giri, Syech Maulana Malik Ibrahim, also known as Sultan Ainul Yaqin, began to rule Gresik. In his 1515 book, Suma Oriental, the Portuguese apothecary and traveller Tomé Pires described Gresik as "the jewel of Java in trading ports".[1] Sunan Giri's descendants ruled the area for the following two centuries.

In 1974 the Indonesian government made Gresik, now a suburb of the regional capital of Surabaya, the capital of Gerbankartasusilo.

A large number of industries have established themselves in Gresik, mainly supporting agriculture and agricultural machinery. A lot of home-based industry exists, making caps (songkoks), bags, etc.

One of the largest factories in Gresik are PT. Semen Gresik (Gresik Portland Cement) and PT Petrokimia Gresik. PT. Semen Gresik, the largest cement factory in Indonesia, supplies 41% of the Indonesian market. While PT Petrokimia Gresik, the most complete fertilizer producer in Indonesia, supplies 50% of national subsidized fertilizers.

The city has a reputation for its many coffee shops, called warkop (from warung kopi). In 2002, Petrokimia Putra (owned by PT Petrokimia Gresik), a soccer club from Gresik, won their first national league title in Jakarta.